Devices, such as electronic devices, and particularly electronic payment devices (for example, so-called “smart cards”) may be useful for a variety of payment and other applications. Some payment products, such as those referred to as pre-authorized or offline-prepaid, rely on a balance managed by the card. The balance indicates the funds available on the card and is decreased by the transaction amount when a transaction takes place. For customer convenience, the terminal may display this balance before and after the card is debited.
In some types of infrastructure, the card is debited using a command issued by the terminal. The command data typically contains the transaction amount, while the corresponding response from the card confirms (and authenticates) that the card was debited and provides the necessary information for the clearing of the transaction.
United States Patent Publication 2004-0230535 of Binder et al. discloses a method and system for conducting off-line and on-line pre-authorized payment transactions. In the Binder et al. invention, a system and method are provided for conducting a financial transaction using an integrated circuit device issued by a card issuer and capable of conducting off-line and on-line transactions with a payment card network. The method includes utilizing the card for conducting a transaction and reading from the card a pre-authorized balance, a pre-authorized limit, and an account number. The method also includes requesting on-line authorization in the event the value of the transaction is greater than the difference between the pre-authorized limit and the pre-authorized balance. Finally, the method includes receiving authorization to conduct the transaction and updating by the card the pre-authorized balance and the pre-authorized limit, wherein the card issuer, through the integrated circuit device, is able to continually update the pre-authorized limit based on various factors including the transaction and account activity. The complete disclosure of the aforementioned United States Patent Publication 2004-0230535 of Binder et al. is expressly incorporated herein by reference in its entirety for all purposes.